Yesterday, the US announced that in the near future they could withdraw from the NAFTA agreement and against this background the Canadian dollar fell under the sell-off against other currencies. Oil prices yesterday also stopped their upcoming rally and entered a corridor, which may well indicate the completion of the upward momentum.
Yesterday, after the release of a number of indices the dollar's exchange rate was slightly shaken, but managed to win back its positions and demonstrates positive dynamics at the moment.
Today the US expects the release of the monthly and annual Producer Price Index for December and the speech of Fed member William Dudley. From Canada we expect the release of the House Price Index.
Given the focus of our pair, we look forward to further advancing our pair up. Technical indicators do not contradict this course of events. Thus, the MACD aims to rise above the zero mark, and the Stochastic has not yet entered the overbought zone. The fast MA (21) rushed upwards and is giving us a confirmation for a possible turn at the intersection with the slow MA (61).
We advise you to take long positions when crossing the moving averages and look for targets in the area of the resistance levels 1.2650 and 1.2730.
